$53 Billion Gained (but You Won’t Hear That on the News)
$53 Billion Gained (but You Won’t Hear That on the News)
Why the Headlines Downplay Good News—and Why Volatility Isn’t Over Yet
Written by Matthew McCabe | Principal Financial Planner | Newcastle Advisors
The Australian sharemarket has just bounced back strongly, clawing back $53 billion in value—but you’d be hard-pressed to find that number making headlines.
Why? Because while market losses are shouted in billions, market gains are usually framed as modest percentages. As always, fear sells. But let’s cut through the spin and talk about what’s really happening—and what it means for your wealth strategy.
Markets Rebound, But Uncertainty Remains
After a wild week sparked by US President Donald Trump’s aggressive tariff war, investor sentiment seems to have steadied—for now.
“We’ve seen a classic ‘buy-the-dip’ reaction,” says Matthew McCabe, Principal Financial Planner at Newcastle Advisors.
“Markets were heavily sold off on fear, and now some of that money is flowing back in as investors look for bargains.”
The ASX 200 jumped 1.7%, recovering a big chunk of Monday’s 4.2% loss. All 11 sectors posted gains, led by energy, mining, and tech. Even Chinese equities rebounded after a 14% drop earlier this week, and US futures are showing signs of life.
But this isn’t over.
“Let’s not kid ourselves—we’re not out of the woods yet,” McCabe cautions.
“Volatility is going to stick around as long as uncertainty does. The global trade war is still very much in motion, and things could shift again tomorrow.”
The VIX Is Rising—But We’ve Seen Worse
The VIX, often referred to as Wall Street’s “fear gauge,” is sitting at 45. That’s elevated—but for context, during COVID and the Global Financial Crisis, it spiked closer to 80.
“We’re seeing increased volatility, but we’re not in full-blown panic mode—yet!” says McCabe.
“What matters now is how both the US and China respond in the coming days.”
China has already announced retaliatory tariffs and is threatening to escalate, while Trump continues to float additional 50% duties on key imports. That uncertainty is keeping both equity markets and investor confidence on edge.
Media Bias: Billions Down, Percentages Up
It’s no coincidence that Monday’s drop was framed as “$100 billion wiped off Aussie markets”, while today’s $53 billion recovery is described as “a 1.7% lift.”
“This narrative creates fear, which drives clicks and panic selling,” McCabe explains. “But savvy investors understand that markets move in both directions, and the only loss that matters is the one you lock in by selling.”
Should You Be Worried? Or Ready?
Despite the chaos, there’s a case for optimism—if you stay calm and strategic.
“If you’ve got spare capital, this environment may present a buying opportunity,” says McCabe. “
Dollar-cost averaging into the market during times of uncertainty has historically paid off for patient investors.”
Final Thought: Stay Focused, Stay Invested
Times like these test your strategy—and your emotions. But reacting to headlines often leads to crystallising losses and missing the recovery.
“This is why the value of financial advice is never clearer than in moments like this,” McCabe says.
“It’s not about predicting the next move—it's about positioning yourself for the long game.”
Whether you’re navigating retirement, building wealth, or investing for your family’s future, now is a great time to review your plan with a trusted financial expert.
Book a Strategy Session with Matthew McCabe
If you’d like to talk through your portfolio or investment plan, book a meeting today. Let’s ensure your financial strategy remains robust—no matter what the markets throw at us next.